In July 2001, the European Commission issued a Green Paper on a European framework for corporate social responsibility (CSR). The aim was to launch a wide debate among the stakeholders. For an overview of the responses from various stakeholders, see “Forces@Work”.
Issues:
The European Parliament’s rapporteur on the Green Paper on CSR, Richard Howitt (UK-PES), has issued a working document in which he outlines the following issues:
* a directive should be brought forward requiring companies to undertake annual social and environmental reports;
* a methodology for reporting should be developed by the Global Reporting Initiative;
* all European pension funds should be required to state their ethical policy;
* in the revision of the European Work Council Directive, amendments should be added to ensure that the work councils are required to oversee environmental and social impacts of the company’s activities;
* the Social Fund could be used to support training for socially responsible restructuring of companies;
a European Ombudsman could be created for corporate activities in third countries;
* a review of the Brussels Convention should take place, to clarify the possibility to weather European courts could have jurisdiction for cases of corporate criminal liability in third countries.
Positions:
The panel members of the hearing presented their positions on the Green Paper and their comments on the rapporteurs documents. CSR Europe advocated a flexible approach without any mandatory regulations on e.g. reporting, because of the risk that it would inhibit the companies’ creativity. Instead, the Commission should focus on spreading best-practice and on promoting CSR, through for example a European Year of CSR.
NGOs such as Solidar, on the other hand, called for a standardised reporting system with certified verification. They also emphasised that the EU should first focus on compliance with existing social and labour laws, before encouraging additional voluntary actions.
Next steps:
In July 2002 the Commission is expected to issue a communication on CSR, which should outline action programmes for the near future. The issues likely to be discussed include:
* steps towards a more harmonised reporting and labelling system;
the development of a discussion forum (stakeholder forum);
* the promotion of research programmes on CSR;
* proposals on how to integrate CSR into other EU policy areas.